Li & Fung reports decrease of more than 8% in turnover in first half of 2019
today Sep 3, 2019
Hong Kong-based conglomerate Li & Fung has announced $5.35 billion (4.81 billion euros) in turnover in the first half of 2019, representing a 8.4% decrease. Total margin as a percentage of turnover, however, remained relatively stable at 10.9%, while operating costs reduced 1.4% to $478 million.
Li & Fung's results were notably impacted by the company's extensive ongoing restructuring efforts, which, since 2017, have reorganized the group's operations around a new management team and implemented a cost reduction program. In line with these streamlining efforts, the company has already put an end to its activities in the knitwear, beauty and cosmetics categories.
"The new management team has been focused on restructuring the company and all operational KPIs are now improving for both our customers and suppliers," explained Li & Fung CEO Spencer Fung in a release. "We are starting to gain momentum and winning market share and new customers due to our operational excellence, global diversified network and 3D virtual design services. As a result, turnover decline is stabilizing and beginning to bottom out."
The reporting of Li & Fung's latest results comes hot on the heels of the company's announcement that Singapore-based investment fund Temasek has acquired a 21.7% stake in its LF Logistics division, injecting $300 million into the structure and valuing it at $1.4 billion.
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